The big challenge for gold as Fed meets

From blog.hycmlab.com

As we start the week there is a big challenge for gold. Last week’s hot CPI print led to increased expectations of a 100bps rate hike. Short Term Interest Rate Markets now see around an 85% chance of a 100bps hike. That sudden shift of expectations led to the dollar index moving higher and real yields too. As a result we saw gold immediately plunge lower. This would be expected as gold tends to move inversely to real yields and the USD. The question as we start the week is will that selling continue into the Fed meeting on Wednesday? Once we get to Wednesday we need to be very sensitive to change. If the Fed end up ... (full story)